Sydney-based Space Machines Company has been awarded a A$2.9 million contract by Australia's Department of Defence to develop an advanced artificial intelligence-driven system aimed at detecting and responding to threats against satellites in Earth's orbit, bolstering national and allied space security in an increasingly crowded and contested domain.
The contract, announced in early January 2026, was granted through the Defence's Advanced Strategic Capabilities Accelerator (ASCA) under its Emerging and Disruptive Technologies, Decision Advantage program. It funds the creation of the Space Threat Analysis and Response System (STARS), a prototype designed to provide autonomous, near real-time monitoring and decision support for protecting Australian and partner-nation space assets.
Space Machines Company (SMC), a pioneer in on-orbit servicing and rapid-response spacecraft, will lead the 24-month project to transform STARS from concept to a functional prototype. The system will ingest data from ground-based space domain awareness networks, commercial surveillance providers and other sources to predict potential hazards such as close approaches between satellites, rendezvous and proximity operations, and possible interference in low Earth orbit (LEO), where objects hurtle at speeds approaching 28,000 kilometers per hour.
"STARS addresses a critical need for enhanced space domain awareness through autonomous analysis and response planning," said Rajat Kulshrestha, CEO and co-founder of Space Machines Company. "The dynamic nature of the space environment demands automated systems capable of processing complex data and generating actionable intelligence at unprecedented speeds."
By leveraging AI and advanced analytics, STARS will evaluate threat characteristics almost instantly, assess risks to specific satellites, and generate prioritized response options. The design emphasizes protection of sovereign Australian assets while extending safeguards to allied systems, aligning with the country's National Defence Strategy and efforts to build resilience in the allied space defence industrial base.
Upon prototype completion, SMC intends to integrate STARS into its Solstice OS platform — an AI-driven command-and-control system for managing fleets of spacecraft and enabling on-demand orbital services. This would allow coordinated operations involving SMC's Optimus Viper Rapid Response Vehicles, a class of agile, 200-kilogram orbital servicing spacecraft capable of rapid deployment and close-proximity maneuvers to inspect, monitor or protect target satellites.
The Optimus Viper, described as a "space first responder," builds on lessons from SMC's earlier Optimus demonstration vehicle, launched aboard a SpaceX Falcon 9 rocket. These vehicles are engineered for 24-hour response capabilities, supporting commercial, defence, insurance and civil missions in areas like debris management, satellite life extension and proximity inspection.
The STARS project reflects growing concerns over the militarization and congestion of space. With thousands of satellites now in orbit — including massive constellations like Starlink — the risk of collisions, intentional interference or anti-satellite activities has risen sharply. Nations are racing to develop sovereign capabilities for space situational awareness amid geopolitical tensions, including those in the Indo-Pacific region.
Australia's investment in STARS comes as part of broader efforts to enhance decision advantage across domains, including space. The ASCA program recently awarded multiple contracts totaling nearly A$40 million to advance technologies in air, land, maritime, cyber and space. STARS stands out for its focus on autonomous threat response, enabling operators to shift from detection to action at "machine speed" in environments where traditional manual processes leave only minutes for critical decisions.
Kulshrestha highlighted SMC's expertise in autonomous spacecraft operations and distributed command-and-control as key factors in securing the contract. The company, headquartered in New South Wales with operations in Adelaide, has positioned itself as a leader in proliferated space resilience through mass-produced rapid-response systems and close-proximity operations.
Looking ahead, SMC plans to offer a mature STARS capability to allied partners via the Solstice OS platform. This coalition-ready architecture would permit partners to incorporate their own intelligence feeds for threat detection while coordinating joint protective responses, strengthening Australia's role in multi-domain operations with allies such as those in AUKUS and the Quad.
The project advances priorities in Australia's sovereign defence industrial base, including autonomous systems and battlespace awareness. It complements other SMC initiatives, such as partnerships with universities for spacecraft manufacturing facilities and international collaborations like the Space Maitri mission with India.
Defence officials have not detailed specific threat scenarios targeted by STARS, but the emphasis on LEO — home to most operational satellites — underscores vulnerabilities from debris, adversarial maneuvers and emerging anti-satellite technologies demonstrated by several nations in recent years.
Industry analysts view the contract as a vote of confidence in Australia's growing space sector, which has expanded rapidly with government support through the Australian Space Agency and programs like Defence Trailblazer. SMC's work on STARS could pave the way for export opportunities and deeper integration into allied space architectures.
As space becomes more contested, tools like STARS represent a push toward proactive, technology-driven defence of orbital infrastructure vital for communications, navigation, intelligence and everyday services. The prototype's development over the next two years will test whether Australia can deliver a sovereign solution capable of keeping pace with the accelerating challenges above Earth.
Originally published on ibtimes.com.au
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